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Chapter 2

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Global Management Studies
GMS 200
Sui Sui

GMS200 SUI SUI CHAPTER 2 Chapter 2 Study Questions  What can be learned from classical management thinking?  What insights come from the behavioural management approaches?  What are the foundations of modern management thinking? Management Ideas and Practice Throughout History Ie. Egypt pyramid construction (5000 BC), Chinese Dynasties (2250 BC) The Industrial Revolution (1750-1850) Machine power Large-scale production Highly specialized workers Innovations Marks birth of classical management Study Question 1: What can be learned from classical management thinking?  Classical approaches to management include:  Scientific management  Administrative principles  Bureaucratic organization Figure 2.1 Major branches in the classical approach to management.  Scientific management (Frederick Taylor) (1856-1915)  Develop rules of motion, standardized work implements, and proper working conditions for every job.  Carefully select workers with the right abilities for the job.  Carefully train workers and provide proper incentives.  Support workers by carefully planning their work and removing obstacles  An American mechanical engineer  ―Father of scientific management‖  One of the first management consultant  Taylorism:  First effiency worker  Used stopwatch  Reaction: workers hated it  Henry Ford followed it  Moved to household  Influence: lots of companys base it off it… ex: Mcds, Subway  Was hated as well… GMS200 SUI SUI CHAPTER 2  Scientific management (the Frank and Lillian Gilbreth)  Motion study: Science of reducing a job or task to its basic physical motions.  Eliminating wasted motions improves performance  Motion Study: o Brick laying process  Practical lessons from scientific management  Make results-based compensation a performance incentive  Carefully design jobs with efficient work methods  Carefully select workers with the abilities to do these jobs  Train workers to perform jobs to the best of their abilities  Train supervisors to support workers so they can perform jobs to the best of their abilities  Problems with scientific management  Workers are necessarily human  No time to relax  No permission to innovate  Controversies:  Allegations of employee mistreatment  Suicides  Protests  Administrative principles (Henri Fayol) — 1. Division of labour 2. Authority 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interests 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Personnel tenure 13. Initiative 14. Espirit de corps  Administrative principles (Henri Fayol) — rules of management:  Foresight — to complete a plan of action for the future.  Organization — to provide and mobilize resources to implement the plan.  Command — to lead, select, and evaluate workers to get the best work toward the plan.  Coordination — to fit diverse efforts together and ensure information is shared and problems solved.  Control — to make sure things happen according to plan and to take necessary corrective action. GMS200 SUI SUI CHAPTER 2  Administrative principles (Henri Fayol) — key principles of management:  Scalar chain — there should be a clear and unbroken line of communication from the top to the bottom of the organization.  Unity of command — each person should receive orders from only one boss.  Unity of direction — one person should be in charge of all activities with the same performance objective.  Bureaucratic organization (Max Weber)  Bureaucracy o An ideal, intentionally rational, and very efficient forthof organization that could correct performance deficiencies in the late 19 century German organizations o Based on principles of logic, order, and legitimate authority  Characteristics of bureaucratic organizations:  Clear division of labour  Clear hierarchy of authority  Careers based on merit  Impersonality  Formal rules and procedures  Possible disadvantages of bureaucracy:  Rigidity in the face of shifting needs  Resistance to change  Excessive paperwork or ―red tape‖  Employee apathy  Slowness in handling problems Study Question 2: What insights come from the behavioural management approaches?  Behavioural Management - human resource approaches include:  Hawthorne studies  Argyris’s theory of adult personality  Maslow’s theory of human needs  McGregor’s Theory X and Theory  Follett’s notion of organizations as communities Figure 2.2 Foundations in the behavioural or human resource approaches to management GMS200 SUI SUI CHAPTER 2  Administrative principles (Mary Parker Follett)  Groups and human cooperation: o Groups are mechanisms through which individuals can combine their talents for a greater good. o Organizations are cooperating ―communities‖ of managers and workers. o Manager’s job is to help people in the organization cooperate and achieve an integration of interests. o Concerns for managerial ethics and corporate social responsibility  Administrative principles (Mary Parker Follett)  Forward-looking management insights: o Making every employee an owner creates a sense of collective responsibility (precursor of employee ownership, profit sharing, and gain- sharing) o Business problems involve a variety of inter-related factors (precursor of systems thinking) o Private profits relative to public good (precursor of managerial ethics and social responsibility)  Hawthorne studies  Carried out by Western Electric Company at their Hawthorne plant in 1920s  One of the forerunner in applying scientific management to its production units  Initial study examined how economic incentives and physical conditions affected worker output.  No consistent relationship found.  ―Psychological factors‖ influenced results.  Relay assembly test-room studies o Manipulated physical work conditions to assess impact on output. o Designed to minimize the ―psychological factors‖ of previous experiment. o Factors that accounted for increased productivity:  Group atmosphere  Participative supervision  Employee attitudes, interpersonal relations and group processes. o Some things satisfied some workers but not others. o People restricted output to adhere to group norms.  Lessons from the Hawthorne Studies: o Social and human concerns are keys to productivity. o Hawthorne effect — people who are singled out for special attention perform as expected.  Maslow’s theory of human needs  A need is a physiologica
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